Morning Reads

Morning Reads

 

 

• Wall Street Points to a Higher Open Ahead of Critical July Inflation Data

  U.S. stock futures gained momentum ahead of the key CPI report release, with Nasdaq futures leading gains at +0.7% as investors look for direction on Fed rate policy.

• Citadel Securities Called the Stock-Market Reset: Now It Sees a Leverage Buildup

  Citadel Securities notes that after a brief summer pullback, falling volatility is paving the way for systematic hedge funds and institutional managers to add leverage and buy back into U.S. equities.

• Global Markets: Shares Mixed in Europe and Asia as Oil Prices Gain

  European and Asian equity indexes traded unevenly, while Brent crude gained over 1% toward $90/bbl due to ongoing uncertainties over Middle East oil supply.

• Japan Stocks Muted as Investors Await U.S. CPI Report

  The Nikkei 225 traded mostly sideways as tech and AI-related shares showed mixed performance, while mining stocks outperformed on rising crude prices.

• Kospi Surges 3.7% Led by Semiconductor Rally

  South Korea's benchmark stock index outperformed global peers, boosted by heavy buying in memory chipmakers Samsung Electronics and SK Hynix.

• Oil Prices Swing Amid Middle East Shipping Deadlock

  Energy markets remain volatile as crude prices continue to fluctuate, keeping gas prices elevated and raising inflation concerns across Wall Street.

• Treasury Yields Stabilize Ahead of Federal Reserve Policy Signals

  The 10-year Treasury yield hovered around 4.67%, maintaining pressure on long-term borrowing costs and mortgage rates.

• Aecon Announces Renewal of Normal Course Issuer Bid

  Aecon Group received TSX approval to renew its share buyback program, allowing the purchase of up to 5% of its issued common shares.

• S&P 500 Hovers Near Record Highs Driven by Strong Earnings Season

  Corporate earnings results continue to top consensus estimates, helping support elevated valuations across major U.S. indexes.

• M&A Activity Picks Up in Tech and Maritime Services

  Billion-dollar acquisition announcements—including Blackstone’s buyout of MarineMax and Teledyne’s deal for Varex Imaging—highlight active private equity and strategic dealmaking.

 

Inflation watch: The July CPI may not rock the boat, but it may reveal why rates are headed higher.

More layoffs: Oracle (ORCL) is planning more job cuts as it racks up billions in debt for AI spending.

Iran war: Hormuz deadlock continues, but U.S. energy chief claims Gulf oil exports top pre-war levels.

Subcontracting crackdown

New York City is taking on Amazon (AMZN) with a bill that would require delivery companies to directly employ last-mile workers instead of relying on third-party subcontractors. The Delivery Protection Act was introduced this year by New York City Council member Tiffany Cabán and is backed by Mayor Zohran Mamdani.

More oversight: The legislation would create a licensing system for certain last-mile warehouses and distribution facilities. It would also set minimum safety, training and worker protection standards while holding the company operating the last-mile facility responsible for employing the workers there. While Amazon is the main target, firms like FedEx (FDX) and UPS (UPS) would also be affected. "Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting," Mamdani said, pointing to higher instances of traffic accidents and worker injuries. He added that the bill is "commonsense regulation" that ensures the companies benefiting from workers' labor are responsible for the consequences of their business practices.

Bigger picture: If the measure passes, it could offer a template for other cities and states to tighten oversight of Amazon – the second-largest private employer in the U.S. "Amazon's Delivery Service Partner model is the most dangerous business model in America today," said Teamsters General President Sean O'Brien. "The Delivery Protection Act is the blueprint for how workers can fight back against Amazon's greed." The e-commerce giant in April said the bill would force it to consider relocating its delivery operations outside New York City. The Amazon-backed New York Delivers coalition warned that the legislation would "put jobs at risk, raise costs for working families, and make it harder for small businesses — especially in the outer boroughs — to survive." Teamsters claimed that Amazon spent over $5M to "bankroll a dark money campaign" against the bill. (10 comments)

Legal pushback: It's likely that the legislation would wind up in court, similar to another controversial move by Mamdani – the pied-à-terre tax. A judge on Monday temporarily blocked the tax on high-value second homes in New York City while a lawsuit by homeowners moves forward. "The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return," President Donald Trump posted on Truth Social. "I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late." Bill Ackman says socialism is a disaster, citing Mamdani's policies

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What else is happening...

Super Micro Computer (SMCI) pops on strong guidance.

CoreWeave (CRWV) surges as revenue more than doubles.

AI race: Google's (GOOGL) Gemini app crosses 1B users.

'Avoid disaster' - Sanders calls for freezing AI development.

Ellison threatens to pull Paramount (PSKY) from California.

Pentagon opens Golden Dome portal to engage contractors.

Northrop unveils Raid Hunter; Lockheed's (LMT) hypersonic push.

CME (CME) to debut index-based hockey futures next month.

Data center dividends: Jobs, home values soar in these counties.

Which stocks benefit as AI data centers create a power shortage?

Today's Markets

In Asia, Japan +0.8%. Hong Kong -0.8%. China +0.3%. India -0.2%.
In Europe, at midday, London flat. Paris -0.1%. Frankfurt +0.5%.
Futures at 6:30, Dow +0.1%. S&P +0.3%. Nasdaq +0.7%. Crude -0.3% to $82.95. Gold +0.9% to $4,479.30. Bitcoin -0.2% to $64,087.
Ten-year Treasury Yield -2 bps to 4.67%.

On The Calendar

Companies reporting today include Cisco (CSCO) and Nebius (NBIS).